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Gold H4(4 Hours) Chart Analysis – Key Resistance Zone, Bearish Hidden Divergence
On the H4 chart, we have a strong resistance zone that has formed and the price which is moving higher is currently nearing this strong resistance zone. Also, the 200 moving averages coincides in the same level which makes this area a key resistance zone for us. In addition to this, we have a bearish hidden divergence that has formed between the first high that has formed at 1831.70 and the second high that has formed at 1782.51, followed by a continuing bearish divergence based on the MACD indicator. We may consider these as evidences of bearish pressure and also currently there are no signs opposing this bearish view. So in my POV, based on all this, there are two possible scenarios from here. The price might directly move lower from the current zone or alternatively the price might create one push higher, reach the key resistance and then it might bounce lower from this zone. In either ways my view remains bearish here until the key resistance zone holds.
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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To your success,
Vladimir Ribakov
Certified Financial Technician
